Xinyi Group, a leading company in the glass and solar panel industry from China, will soon build a quartz sand or silica sand downstream facility in the Rempang Eco-City Area in Batam, Riau Islands. Later it can contribute to reducing imports of Indonesian solar cells.

Established in 1988, Xinyi Group is a world leading integrated glass and solar panel manufacturer using advanced technologies from China. The company produces high-quality float glass and electronic glass products.

Xinyi will improve the quartz sand sector

Bahlil Lahadalia, Minister of Investment following up on investment plans from Xinyi during a visit to Xinyi Group's production facilities in Wuhu, China.

"I see that Xinyi is one of the biggest players in the world who, God willing, will invest in Indonesia, in Rempang," he said, on July 19, 2023.

He considered this visit to reflect the commitment of the Indonesian government to continue to encourage downstream in various industrial sectors.

"We have a commodity of quartz sand, silica, which we have been exporting as raw materials. By building a glass and solar panel factory ecosystem, this is part of the downstreaming in the quartz sand sector," he said.

Dadan Kusdiana, Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) said that Indonesia will build a domestic solar panel factory, after only being able to import solar panels from other countries.

Gerry Tung, CEO of Xinyi Group said that the increasing investment climate and Indonesia's economic potential was one of the reasons why the company decided to increase its investment in Indonesia. We see very good development so we are interested in joining a new industry in Batam.

"For several years we have noticed that investment in Indonesia is very good," he said.

Previously, the Xinyi Group company had invested in Gresik's Java Integrated Industrial and Port Estate (JIIPE) for a glass factory.

Meanwhile, areas that have potential for solar panel factory projects includes the Bangka Belitung Islands Province, because the area has a quartz sand mine.

Jokowi bans export of silica or quartz sand

On the other hand, China, as a fairly advanced country in the manufacture of solar cells, also needs quartz sand, for which export demand to China has increased sharply, accompanied by a significant increase in prices.

"China is very active in building solar panels. They need very large quantities of quartz sand," said Gilbert Markus Nisahpih, Director of PT Samindo Resources Tbk (MYOH).

Recently, President Joko 'Jokowi' Widodo stated that he would strictly prohibit the export of silica sand or quartz sand and their 60,000 derivatives.

Jokowi argued that the commodity is needed for the electric vehicle (EV) ecosystem, especially for the manufacture of glass which is the main component of solar cells.